How can the market value of my house decrease yet the assessed value increase?
Starting the second year you qualify for Homestead you receive a 3% cap on your assessed value. Over time, as your market value increases at a faster rate then your capped assessed value it creates a gap between the two. This gap is called Save Our Homes exempt value. If your market value falls but there is still a gap between it and your assessed value than you will still see an increase in your assessed value of up to 3%. Please note, however, that your assessed value can never be higher than your market value so if your market value has fallen down to or below your assessed value, then your assessed value will decrease as well.
